Problem: How to change the data of deferred expenses?
Solution: Use Expense Recognition document and follow the steps as shown.
Case detail- Client has recorded deferred expense for a certain period, and would like to write off the balance earlier then the deferred end date.
1. How the deferred is recorded
Deferred Expenses were recorder for the period from August 2022 to July 2023.
So entry of Invoice Received for these expenses was created (Summary of the how it is recorded is shown below)
See also Deferred Expenses Entry (For more detailed understanding)
Generate a Trial Balance to observe that Deferred Expenses are accrued:
Deferred Expenses are calculated every month as Month End Close procedure is executed. Option Calculate Current Expenses for Deferrals should be enabled:
Expense Recognition document with calculation is created automatically:
Generate a Trial Balance to see that Deferred Expenses are written off in the closed month:
Step 2- How to deal with change in deferred end date for the above recorded entry-
It was decided to write off Deferred Expenses totally in December 2022. To make changes to the Deferred Expenses date, create an entry of Expense Recognition manually:
Put a tick Manual Processing and enter total remaining amount in a field Current Expense Amount:
4. Generate a Trial Balance to observe the result of the operation - Deferred Expenses are totally written off:
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